Money doesn't grow on trees

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Do you believe in a “free lunch”? If so, then you most likely think a government-edict minimum wage is a good idea. You might also believe that money grows on trees, but the only real money trees are government programs.

A wage is a payment per hour that for the period of employment suits the worker and the employer in a free market. The worker determines if he is willing to meet the requirements of the job, and the employer determines if the result meets his requirements. Most employers of low-wage workers do on-the-job training and set work rules and the quality of performance. Employees meet these or leave. Employers may give increasing responsibility and more difficult tasks and increase the pay. This is how the capitalist world works.

A government edict doesn’t change the above discussion; it only raises the level of performance required for the job. President Obama proposes raising the current minimum wage to nearly $9 an hour. The employer is forced to raise prices, cut his profit margin, let go the least productive workers and/or make do with less business. The usual result is some combination of all four.

The next question is: Why not make every job pay a living wage? What is a living wage? Perhaps $10 an hour with minimum benefits is a living wage for one person assuming, 2,000 hours a year in some locations (cost of living, state taxes). Or $20 an hour would be about $40,000 per year, and be near the middle class for a family of four in some locations. Edict $30 an hour and everyone working will be middle class.

Now the question is: How many of us are working, and how much in taxes are we paying? Every government regulation concerning wages, working conditions, medical insurance, vacation, sick pay, maternity pay, etc., affects how many jobs are available.

Gil Mullins

Aiken, S.C.

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specsta
6756
Points
specsta 03/08/13 - 02:14 am
8
13
Greed, Greed, Greed - This Is Corporate America

Let's see - WalMart makes 16 BILLION in PROFITS, yet the company pays its workers a wage that is suitable to qualify for poverty. And somehow, some folks think that this is okay.

Exxon Mobil makes 41 BILLION in profits - yet the worker overseeing the gas pumps at the register makes a pittance - and gas prices continue to rise.

Corporate greed is probably the ugliest chapter in American history, one that has destroyed lives and communities. Companies orchestrate the most heinous, unethical things in order to turn an obscene profit (such as selling unsafe products), and some folks think that this is okay.

Companies pay workers slave wages, refuse to offer healthcare, extol horrendous working conditions (where a person can be fired just for being out sick), thumb their noses at labor laws, and yet some folks think this is okay.

Workers go to work sick out of fear of losing their jobs. Workers put up with racism, sexism, nepotism and every other "-ism" just to be able to feed themselves. Companies can fire a person at-will, just because you might look funny. And it's LEGAL.

The corruption in corporate America stinks like a rat-infested sewer. Minimum wage? If anything, companies that makes billions of dollars in profits year after year should have enough human decency to share that wealth with the folks who created it - the workers. If that means paying a wage that brings someone out of poverty, it is only the right thing to do.

Profits - yes. Obscene profits that destroy families and communities - NO!

smartasugarsugar
139
Points
smartasugarsugar 03/08/13 - 04:55 am
7
10
i love it when corporate big

i love it when corporate big wigs think they are doing us a favor by giving employees a Christmas lunch lol, what a joke. or better yet 50 bucks lol that's awesome. they spring for lunch in the office and use donations to do it, every Friday, blow off all the people around them, the ones really working and then at the end of the year smile as they hand you a store credit card for 10 bucks or a free after noon off. cheap SOB's.

Riverman1
90617
Points
Riverman1 03/08/13 - 05:02 am
12
2
Economics 101

It’s simply illogical to keep raising the minimum wage. There are jobs that require no education or other requirements that are going to always be paying whatever the current bottom is. Make it $9 an hour and the same supply and demand in the labor market will keep these same people on the bottom rung of the ladder as the other workers demand more. The resulting inflation keeps minimum wage workers struggling to make their basic needs.

If legislating salaries without respect to the economic realities actually worked we would have something that violated economic and mathematical laws. I am willing to pay you x number of dollars to do this job for me. If I have to pay you x plus whatever government demands, it may not be in my best interests to have you do the work.

carcraft
27884
Points
carcraft 03/08/13 - 05:47 am
8
2
People seem to think

People seem to think corporate America just prints money like the treasury. You know, run a trillion dollar deficit every year and lie to people about it! Why not pay every worker a million dollars? Sure some companies make billions in profits (others like Obama's Fisker motors and Enr 123 etc. not so much). But the real question is how much capital (i.e. money) do these corporations put at risk? The profit margin for oil is about 8%. If Exxon Mobile makes a billion then it is putting up over a 100 billion dollars to drill wells and manufacture petroleum products. Most gas stations are privately owned franchises. Local people buy the name, the logo and the right to dealership in a given area. Don't blame Exxon mobile for the salaries of workers at the station that is the owner of the gas station. However if the owner isn’t making money what is the point of him risking his capital to open the station? If station owners can’t make a profit where are you going to buy gas? Have you noticed all the empty boarded up gas stations around Augusta? If you have a retirement account and it has an energy sector holding (it would be pure lunacy not to have energy sector mutual funds) then you are part owner of evil gas companies like Exxon Mobile. Exxon Mobile has a responsibility to get you the most return on your investment it can. Gee maybe you are part of the problem...BWAHAHAHAHAHAHA

carcraft
27884
Points
carcraft 03/08/13 - 05:44 am
7
2
Watched "Shark Tank" last

Watched "Shark Tank" last night. At one point Daymon Johns told some one that he worked at Red Lobster and understood a little about buying and selling Lobster. Mr. Johns took knowledge gained from a dead end job and used it to make a $50,000 dollar business decision. Oh by the way Daymoin Johns does't work for minimum wage any more! I do believe he has "moved on"! but he still reatins insight into what he learned!

carcraft
27884
Points
carcraft 03/08/13 - 05:50 am
8
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Specstra if it is so easy

Specstra if it is so easy open a business. Multi Billionaires on Shark Tank started with nothing like Barbara ($1,000) and Daymon ( small loan from his mother), and today are very wealthy. It can't be too hard can it? Then you can pay your workers what you think they are worth.

nofanofobama
6864
Points
nofanofobama 03/08/13 - 06:33 am
9
1
...if you work for someone

...if you work for someone more than a year or two and still making minuimin wage your probably are overpaid and not worth it...minuimin wage is the entry level wage, not a living wage..its based on NO EXPERIENCE ..if you have a heart beat, AND LEARN and try an employer will get you raise...

Bodhisattva
6845
Points
Bodhisattva 03/08/13 - 07:24 am
1
7
Google- "carcraft" + Fisker +

Google- "carcraft" + Fisker + Augusta Chronicle = 697 results.

nofanofobama
6864
Points
nofanofobama 03/08/13 - 07:53 am
10
2
B/4 you rant and rave about

B/4 you rant and rave about things you dont know . and lets be honest..especially about big oil...they return on investment is one of the smallest in business...also the feds make more in taxes on a gallon of gas than does big oil...i,m 58 years old and have been working for over 48 years and i,m going to tell you that the AVERAGE worker i see coming into interview or starting a entry-level is job usally aint worth a dime..poor work ethics, poor communications skills and generally just plain lazy..late, call in sick if they call in at all. so b/4 you criticize employers look at the scum some of them have to put up with...and the rules, taxes and regulations that the FEDS put upon employers.. its amazing that any one would hire anymore...

JRC2024
9979
Points
JRC2024 03/08/13 - 07:56 am
10
2
Specta, open a business and

Specta, open a business and see what it is like. I will sell you mine but you probably would not be able to run it and would lose everything with your ideas.

justthefacts
24011
Points
justthefacts 03/08/13 - 07:55 am
8
1
Corp profit

I guess explaining what happens to the profits corps make to Democrats would be a waste of time.

CobaltGeorge
170440
Points
CobaltGeorge 03/08/13 - 08:07 am
9
3
JRC2024 Give Me A Break

you are actually asking Specta to work 12 to 14 hours a day and sometimes on weekends!

soapy_725
43949
Points
soapy_725 03/08/13 - 08:23 am
1
0
Non Profits are the new way to become a millionaire.
Unpublished

Just ask the executives at United Way, The Family Y, Feed The Children, Saddleback Church, Robert Shuler, Benny Hinn, Samaritan's Purse, After School Dance and Babysitting, Ms. Joyce, Mentoring Is Us, etc.

Fleece the goobers and write lots of federal grant applications.

soapy_725
43949
Points
soapy_725 03/08/13 - 08:26 am
1
0
Joke about everyone, working or not, getting a living wage and
Unpublished

cradle to grave benefits. British and European Socialism Model 101. We are on the fast track to the fall of the Modern Roman Empire.

deestafford
30428
Points
deestafford 03/08/13 - 08:27 am
9
2
The minimum wage is an attack on the young and the blacks.

I say this because they are the ones who are most unskilled. An employer cannot afford to pay a person more than he produces. Sometimes an employer can afford to start someone at $5/hour in order to give them a job for spending money and learn job skills: being on time, putting in work to a standard, adhering to work place rules etc. In essence giving them a chance to begin developing life-work skills. That level of production by that person may be worth only $5/hr to the employer and he should be able to hire someone at that level; but, the government prevents that and as a result many young and the blacks never have an opportunity to gain work experience.
As far as someone can't support a family on the minimum wage... anyone who can make only minimum wage has no business being married much less than having a family.
Not only do a few of the commenters here not understand the difference between profit and profit margin neither does Bill O'Reily as evident by his rants about "big oil" and the profits it makes. Of course, it goes without saying that Obama knows nothing about profits and profit margin since he has zero private sector experience and has zero business and zero leadership experience. All of which are showing up in the way he is doing as president. Everything he does he says is "for the people"...which was the same as what Chavez always said as he took his country down the road to socialism and decreased standard of living.

carcraft
27884
Points
carcraft 03/08/13 - 08:31 am
8
1
Bodhisattva- Does that make

Bodhisattva- Does that make it any less true? It is just a great example of what bad choices in capitalism look like. Of course the problem is that Obama was betting with tax payers dollars, billions of them to be exact! Gee maybe if Obama had made better choices we would not need sequestration, but then again Obama does seem to enjoy crony capitalism!

seenitB4
93729
Points
seenitB4 03/08/13 - 08:34 am
5
2
^^^ hahahah yall are funny this am

I love to watch Shark Tank...what you will notice is they don't let emotions get in their way of making business deals...& last night it was so funny when a woman got testy with one of the sharka & he said.."What did you say"....then he said he was out....funny as all get out....they are asking for $$ & then turn around & INSULT the shark....sorta like in our world today...feed me--clothe me--give me a home & I will still bite the hand that feeds me...

seenitB4
93729
Points
seenitB4 03/08/13 - 08:37 am
6
2
The Sharks

Most started with nothing & built on what they learned.....saved & inched ahead....worked day & nights to get ahead....made good decisions & most of them have a pleasant personality.......they judge a persons character & willingness to WORK!

RMSHEFF
17971
Points
RMSHEFF 03/08/13 - 08:59 am
8
1
Some will NEVER understand..

Some will never understand how the markets work. If you don't want to work at walmart for $9.00 an hour, don't, its your choice. America is still a free country, at least as of today. Walmart's profit is only average with a P/E of 15 and a dividend of only about 2%. Some see large a company with "billions" in profit and think they should not make a profit for its shareholders. By the way most of the shareholders are regular folks an pensions funds etc that depend on their dividend.

Red Headed Step Child
4277
Points
Red Headed Step Child 03/08/13 - 10:17 am
9
0
Sugar..

Not sure if you were speaking from your own experience or generalizing, but it sounds like this company you described is at least trying to do a little something extra - and you scoff at it. No company is required to give you anything other than your paycheck and a safe place to work. It's nice to get the "extras"- like the lunches, tokens, etc. but in all fairness, you shouldn't expect them.

dahreese
4869
Points
dahreese 03/08/13 - 10:20 am
5
10
@specsta
Unpublished

specsta 03/08/13 - 02:14 am

Well said.

A farmer using a mule understands not to underfeed the mule and to put the mule in the care of vet when the mule is not doing well.

That lesson seems to be lost on corporations and some of the commentors above.

myfather15
55844
Points
myfather15 03/08/13 - 10:34 am
7
4
I see many of my conservative

I see many of my conservative friends defending big oil and other LARGE corporations; talking about the difference in profit and profit margin, even saying Bill O'Reilly (a businessman) doesn't understand it, because he is attacking big oil. Oooh, of course Bill must not understand it; because he doens't want the oil company making massive profits while screwing the people. But HEY, thats capitalism, right? The Free market right? The PEOPLE shouldn't reign in the greed, just keep making MASSIVE profits, smoking cigars and talking about how awesome you are.

What the heck difference does it make what the difference in profit and profit margin is, when the CEO of ANY oil company is making 35-50 million a year, the Vice President is making 25 million and the next 50 executives in the company are making million dollars salaries; all the while THE PEOPLE are paying near 4 dollars a gallon at the pump. Makes me want to absolutely PUKE, to hear my fellow conservatives BLINDLY support the GREED of capitalism. Notice I didn't say capitalism, I said the GREED of capitalism which INDIVIDUALS have created and the PEOPLE allowed to continue.

It isn't capitalism's fault that people in the system have become consumed with making BILLIONS upon billions. It isn't capitalism's fault when individuals are buying copies of FORBES, looking at the list of billionaires in the world and LUSTING to be on that list. Drool dropping from the corner of their mouth when they see all the digits in their bank account. Yes, there are MANY like this and I know several personally. They are completely consumed with MONEY; it rules their entires lives.

Oh yes, I can't wait for my conservative friends to go after me saying "It's not your business how much an individual makes" or "Who decides how much profit is enough, or too much?"

No, it really isn't my business. I'm not advocating that I get to decide, or certainly that government decides (this is the worst thing that could happen). Again, I'm no fan of government. What I'm saying is that PEOPLE should reign themselves in. Stop shooting for becoming the richest person on the planet and start thinking more about helping others. Fight the addiction that is MONEY and start caring more about others than making money.

In my experience in life, (which is pretty vast) its always the richest that are the less giving and the poor that would give you the shirt off their back, even if they didn't have another to put on.

Now, you could confuse my words as supporting Obama's agenda or being against free market capitalism, but you would be wrong. I'm for both; again, I just want the PEOPLE to control themselves, not government. I want the people to do whats right. The Bible does NOT say money is the root of all evil, it says the LOVE of money is the root of all evil; and it would be impossible for the Bible to be any more accurate in that statement. Also, read Luke Chapter 12; a very good lesson on making so much money you need more barns (Banks) to store it in. Or, just ignore it and keep believe theres absolutely NOTHING wrong with making hundreds of millions because the free market allows it.

myfather15
55844
Points
myfather15 03/08/13 - 10:39 am
6
2
Once again, if you think I'm

Once again, if you think I'm referring to small business owners, you had blinders on when reading my comment. I'm certainly not talking about them.

dichotomy
36279
Points
dichotomy 03/08/13 - 10:50 am
7
4
I am so sick of hearing

I am so sick of hearing "corporate greed". Corporations are in business to make money for the investors who front the money to find the oil, keep the gasoline pumping at the pumps, the lights coming on when you flip the switch, and the Walmarts popping up everywhere. And very few "greedy corporation" have any minimum wage workers. Yes, Walmart does, but why do people shop at Walmart......LOW PRICES. Raise their labor costs and they will RAISE YOUR PRICES equally. Those who keep screaming to raise the minimum wage will also be the first to cry foul when the prices go up on everything to pay for it. Investors will not risk their money for LESS return in this country when they can invest overseas and get a better return. And small business owners will not absorb the loss of a raise in the minimum wage....they will just raise their prices. Raise the minimum wage and the prices will go up in order to continue to pay the current rate of return. When the prices go up on EVERYTHING, the minimum wage worker GAINS NOTHING because the price of everything they have to buy goes up accordingly. Raising the minimum wage with the excuse of helping the minimum wage worker is a totally stupid concept since everything the minimum wage worker has to spend their money on goes up equally. Duh! It's a ZERO SUM GAIN for the minimum wage worker after the prices increase to pay for it.

You don't hurt corporations when you raise the minimum wage. The oil companies don't have minimum wage workers. But I can hear the guy who owns the Quickie Mart and other small businesses. Oh, you got a $2 an hour minimum wage raise. Gee, that's $80 a week. Well I have to pay those 2 clerks at the counter that same $2...24/7...an extra $672 a week labor cost. So, that 20 gallons of gas you bought just went up $.25 a gallon. Gimmee an extra $5 out of the $80 a week you just got. Oh, picked up a coke and a candy bar too.....another $.50 extra. Stop in at Burger King and your whopper just went up $1 and the fries $.25. Going to take your girl to the movies tonight....there is another $2 extra because they have to pay the their staff $2 more an hour. And that new pair of sneakers you've been wanting....well, the shoe store has to pay their salespeople an extra $2 an hour so the shoes probably went up $5. Cell phone bill and cable TV bill went up....wonder why? Throw in a trip to the grocery store and maybe a car wash and your $80 a week raise is gone and you got NOTHING additional for it. ZERO SUM GAIN in their standard of living for a minimum wage worker.

allhans
24520
Points
allhans 03/08/13 - 11:11 am
7
1
Our politicians have never

Our politicians have never ran a business I assume. We, the working class, know that those with no work experience start off at a low rate and work themselves up (or get fired) as they prove themselves. WalMart has a good program but some can't master even that level of employment..We ought to be ashamed. What happened to pride in oneself....

Riverman1
90617
Points
Riverman1 03/08/13 - 11:14 am
9
2
You tell corporations they

You tell corporations they make too much, try to legislate lower profits and see what happens. Corporations are made up of people banded together to invest their money in hopes of making a profit. It's a gamble when someone invests by buying stock in a company. When the profit margin is poor or nonexistenct, shareholders usually sell their stock. That causes the share price to drop with less investment money coming in. The company lays off more workers because they don't have the capital. They may even close. This is as simple as it can be.

nofanofobama
6864
Points
nofanofobama 03/08/13 - 11:19 am
9
2
the big oil companies makes

the big oil companies makes an average of 5 percent profit on there investment...just because it large dollars doesnt mean they are greedy..5 per cent is still 5 per cent...FEDS make more of the finished product than the oil companies ...wheres the outrage???????... and its always those who count other peoples money that seem to complain the loudest...why is it not greed that allows millions to sit on their duffs at home while the rest of us work to support them...the very loudest who complain about the love of money are the most envious ....there are all types who love money.i wish there were far more rich people as long as they make it honestly...because its good for all us....
i

seenitB4
93729
Points
seenitB4 03/08/13 - 11:46 am
2
1
myfather I do get what you are saying on here

I get it & yep it is lopsided as can be...what we don't see though is some people eat-live & breathe to make money.....usually in something they love...take Oprah---Bill Gates--Steve Jobs & many more....it just so happens they also spread jobs around like crazy....& also make millionaires out of some..... & what else we don't see is the endless days-weeks-hours these same people give to accomplish their desires....they don't have vacations ---free time--family time & etc..this happens many times over & over...I know some & I know the personal sacifice it takes from them BUT again it is what they live for..I have seen in my own family what a difference that makes in making a good life or a so so life...
Warren Buffet is another example & he now is giving his billions away...

Humble Angela
41338
Points
Humble Angela 03/08/13 - 12:28 pm
10
3
Why do liberals consider it
Unpublished

Why do liberals consider it "greed" if people want to keep the money they make, but it's not greed when they want to take it away from you?

dahreese
4869
Points
dahreese 03/08/13 - 01:45 pm
5
6
Having seen the greed of Wall
Unpublished

Having seen the greed of Wall Street;

Having seen how our military is misused to defend "American" corporations that have moved their factories to foreign countries and left millions of Americans jobless;

Having seen the American middle class being wiped out with loss of their homes because of the greed of "too big to fail" banks;

Having seen that corrupt CEOs and bank presidents have not been prosecuted for any of the above;

How is it that a conservative can be so blind to all of this to the extent of harping on the poor as the cause of this nation's woes?

It is not the poor who control this nation's wealth, or jobs, or foreign or domestic policies.

It is easily led conservatives who blame the poor.

It is conservatives who blindly follow the dictates of the wealthy and are too blind in their own little cocoons to see it.

It is the anosognosic's dilemma.

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